Nikkei 225 Technical Analysis Talking Points:

If both hold, then a retest of 2018’s 27-year peak is surely a matter of time.

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The Nikkei 225 is in a less certain position than it might seem.

On the one hand, things look quite good for the bulls. Despite the noise of US Midterm elections, the Tokyo blue-chip benchmark remains above the uptrend line with us since late October. Indeed the bulls seem keen to demonstrate that the long run of falls preceding this run higher has not deterred them.

As you can see from the chart above the index has now edged back into an interesting resistance zone. Indeed it might be regarded as base camp for another attempt on the year’s summit. That was the 24,495 hit on October 1, a 27-year high for the Nikkei.